Rahul Mahato

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Tutor

Biography

I am a tutor by profession, engaged from the past 3 years in this field. Teaching is my passion.

Education

MA Finance
Other Schools

Educator Statistics

Numerade tutor for 5 years
605 Students Helped

Topics Covered

Introduction
The Macroeconomics of Open Economies: Understanding Global Markets
Understanding Firm Behavior and Industry Organization

Rahul's Textbook Answer Videos

15:43
Horngren’s Cost Accounting

The Kenosha Company has three product lines of beer mugs $-A, B,$ and $\mathrm{C}-$ with contribution margins of $\$ 5, \$ 4,$ and $\$ 3,$ respectively. The president foresees sales of 175,000 units in the coming period, consisting of 25,000 units of $A, 100,000$ units of $B,$ and 50,000 units of $C .$ The company's fixed costs for the period are $\$ 351,000$
1. What is the company's breakeven point in units, assuming that the given sales mix is maintained?
2. If the sales mix is maintained, what is the total contribution margin when 175,000 units are sold? What is the operating income?
3. What would operating income be if the company sold 25,000 units of $A, 75,000$ units of $B,$ and 75,000 units of $C ?$ What is the new breakeven point in units if these relationships persist in the next period?
4. Comparing the breakeven points in requirements 1 and 3 , is it always better for a company to choose the sales mix that yields the lower breakeven point? Explain.

Chapter 3: Cost–Volume–Profit Analysis
Rahul Mahato
12:03
Horngren’s Cost Accounting

Lifetime Escapes generates average revenue of $\$ 7,500$ per person on its 5-day package tours to wildlife parks in Kenya. The variable costs per person are as follows: $$\begin{array}{lr}
\text { Airfare } & \$ 1,600 \\\text { Hotel accommodations } & 3,100 \\\text { Meals } & 600 \\\text { Ground transportation } & 300 \\\text { Park tickets and other costs } & 700 \\\text { Total } & \frac{11}{\$ 6,300}\end{array}$$ Annual fixed costs total $\$ 570,000$
1. Calculate the number of package tours that must be sold to break even.
2. Calculate the revenue needed to earn a target operating income of $\$ 102,000$.
3. If fixed costs increase by $\$ 19,000$, what decrease in variable cost per person must be achieved to maintain the breakeven point calculated in requirement $1 ?$
4. The general manager at Lifetime Escapes proposes to increase the price of the package tour to $\$ 8,200$ to decrease the breakeven point in units. Using information in the original problem, calculate the new breakeven point in units. What factors should the general manager consider before deciding to increase the price of the package tour?

Chapter 3: Cost–Volume–Profit Analysis
Rahul Mahato
1

Rahul's Quick Ask Videos

01:15
Principles of Accounting

Fixed cost is 30,000 and P/V ratio is 20%. Compute the breakeven point.
Rs. 160,000
Rs. 150,000
Rs. 155,000
Rs. 145,000

Rahul Mahato
06:15
Principles of Accounting

Compute the Gross Profit
Answer the given problem: Annie bought one dozen smartphones. She sold half a dozen for P20,000.00 at a price of P18,000 with a discount of P2,000 per unit. 59 smartphones became available in the market, a new model dozen @ P12,000.00, so she sold each unit. What was her remaining half profit or loss? Compute the following requirements:
a. Gross profit rate
b. Operating profit margin rate
c. Net profit margin rate
d. Return on Investment

Rahul Mahato
05:18
Principles of Accounting

'8. Which of the following option will happen if opening stock was inflated in the financial statement by $10,0002
Closing stock will be influenced by $10,000
Profit are understated by $10,000
Profit are overstated by $10,000
Nothing will happen'

Rahul Mahato
02:50
Principles of Accounting

'Cavy Company estimates that the factory overhead for the following year will be $1,699,200. The company has determined that the basis for applying factory overhead will be machine hours, which is estimated to be 28,800 hours There are 1,660 machine hours for all of the jobs in the month of April. What amount will be applied to all of the jobs for the month of April?'

Rahul Mahato
03:11
Principles of Accounting

A company produces 300 microwave ovens per month, each of which includes one electrical circuit. The company currently manufactures the circuit in-house but is considering outsourcing the circuits at a contract cost of $48 each. Currently, the cost of producing circuits in-house includes variable costs of $26 per circuit and fixed costs of $5,000 per month. Assume the company could not reduce any fixed costs by outsourcing and that there is no alternative use for the facilities presently being used to make circuits. If the company outsources, operating income will:
A. decrease by $6,600
B. decrease by $7,800
C. increase by $14,400
D. stay the same

Rahul Mahato
01:47
Principles of Accounting

Selling price per unit Variable expenses per unit Fixed expenses per month
100 40 $60 , 000
The breakeven point in terms of volume of units per month is:
1,500.
600.
1,000.
360.

Rahul Mahato
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